WeWork (NYSE:WE) stock is taking a beating on Wednesday following reports that the workspace solutions company is preparing to file for bankruptcy.
According to insiders with knowledge of the company’s plans, WeWork could file for bankruptcy as early as next week. Investors will remember that the company only went public in 2021, and that was after a failed initial public offering (IPO) attempt in 2019.
Weighing on WeWork is the company’s business strategy of taking out long leases and then leasing the location out in the short term to businesses. It hasn’t proven the most successful, and the Covid-19 pandemic did major damage to the company as it promoted work from home during lockdowns.
Russ Mould, investment director at stockbroker AJ Bell, said the following about the WeWork reports to CNN Business:
“WeWork looks as if it could be coming to a messy end. Its major backer SoftBank must have reached a point where it can no longer justify bailing the business out.”
WE Stock Movement on Wednesday
Considering the recent bankruptcy reports, it makes sense that shares of WE stock are falling on Wednesday. That has the company’s stock dropping 38.2% as of this writing. This comes alongside 376,000 shares traded, as compared to a daily average of about 4.1 million.
Investors looking for more of the latest stock market stories are going to want to stick around!
We have all of the hottest stock market news that traders need to know about on Wednesday! That includes everything happening with shares of Paycom Software (NYSE:PAYC) stock, Mainz Biomed (NASDAQ:MYNZ) stock and Cellectis (NASDAQ:CLLS) stock today. All of that news is ready to go down below!
More Stock Market News for Wednesday
- Why Is Paycom Software (PAYC) Stock Down 39% Today?
- Why Is Mainz Biomed (MYNZ) Stock Moving Today?
- Why Is Cellectis (CLLS) Stock Up 175% Today?
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
